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Supermarkets & Grocery Stores in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Gaetana Mak Gaetana Mak London, United Kingdom Last Updated: July 2025 SIC UK-G4711

Revenue

£1.8tr

2025-26

£1.8tr

Past 5-Year Growth

Profit

£XX.Xbn

Employees

8m

Businesses

731k

Wages

£XXX.Xbn

Supermarkets & Grocery Stores in the UK industry analysis

European supermarkets’ revenue is forecast to inch upwards at a compound annual rate of 0.6% over the five years through 2025 to reach €1.7 trillion. European supermarkets face intense price competition amid lingering cost pressures. Though EU food inflation stabilised at 2.7% in April 2025 according to Eurostat, consumer focus on value remains high. Discounters like Aldi and Lidl continue to gain share as shoppers seek lower prices. Supermarkets are investing heavily in price-matching schemes, though sustaining these is financially challenging. Tesco and Sainsbury’s have begun scaling back such initiatives, while Asda has abandoned its price match strategy.

Trends and Insights

  • Healthy products move to the sidelines amid affordability issues. Tight incomes have led to a falling focus on healthy products from consumers, with cost becoming more important in a purchase decision.
  • Financial uncertainty drives customers to trade down. With consumers uncertain about their finances in future, supermarket goers are trading down the products they buy, with sales of value and own-brand products on the rise.
  • A handful of companies dominate the market. Supermarkets like Tesco, Carrefour and Aldi have a stronghold in a number of European markets.
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Top Questions Answered in this Report

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What is the market size of the Supermarkets & Grocery Stores industry in the United Kingdom in 2025?

The market size of the Supermarkets & Grocery Stores industry in the United Kingdom is £1.8tr in 2025.

How many businesses are there in the Supermarkets & Grocery Stores industry in the United Kingdom in 2025?

There are 731k businesses in the Supermarkets & Grocery Stores industry in the United Kingdom, which has declined at a CAGR of 0.1 % between 2020 and 2025.

Has the Supermarkets & Grocery Stores industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Supermarkets & Grocery Stores industry in the United Kingdom has been growing at a CAGR of 1.7 % between 2020 and 2025.

What is the forecast growth of the Supermarkets & Grocery Stores industry in the United Kingdom over the next 5 years?

Over the next five years, the Supermarkets & Grocery Stores industry in the United Kingdom is expected to grow.

What does the Supermarkets & Grocery Stores industry in the United Kingdom include?

Food and Beverages are part of the Supermarkets & Grocery Stores industry in the United Kingdom.

How competitive is the Supermarkets & Grocery Stores industry in the United Kingdom?

The level of competition is high and increasing in the Supermarkets & Grocery Stores industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Supermarkets face a few regulatory hurdles. They’re subject to legislation that aims to ensure fair competition, consumer protection and food safety.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Supermarkets & Grocery Stores in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Appealing to the cost-conscious consumer hits profit. Supermarkets are increasingly employing price-war tactics to grab hold of more of the market, to the detriment of profit.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Supermarkets & Grocery Stores in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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